Fed rate cut expectations boost market sentiment; Ethereum, ADA, and XRP lead the gains among major cryptocurrencies

Driven by expectations that the Federal Reserve may cut interest rates by 25 basis points this week, cryptocurrencies rose in tandem with Asian stock markets on Monday. Bitcoin prices edged up to around $91,300, up 2% over the past 24 hours and more than 6% over the past week, continuing last week’s rebound. However, BTC still faces significant resistance near $94,000.

FxPro analyst Alex Kuptsikevich pointed out that this rise remains part of a corrective structure, but if momentum continues, Bitcoin has a chance to further test the $98,000 to $100,000 range.

Among major altcoins, Ethereum performed the best, rising about 3% on the day to trade near $3,135, with a weekly gain of 10.6%, leading the market rebound. BNB rose 1%, Solana was up about 1.6%, and Lido’s stETH climbed nearly 3%. XRP rose 1.2% to about $2.08. ADA was the weakest among major tokens, falling about 1.4% on the day.

Despite the overall market recovery, sentiment remains cautious. CryptoQuant’s bull market score fell to zero for the first time since 2022, indicating the market has entered a deeper bear cycle risk. The firm’s CEO, Ki Young Ju, warned that without new liquidity inflows, Bitcoin prices could fall to the $55,000 to $70,000 range next year.

Meanwhile, some mid-term bullish factors could still improve the outlook. According to K33 Research, the US may adjust 401(k) retirement plan rules in early 2026, opening up a larger capital gateway for Bitcoin. In addition, Ethereum developers have completed the Fusaka hard fork, bringing further optimization for network scalability and efficiency.

The macro environment remains a key driver for the market. Asian stock markets edged higher on Monday, with the MSCI Asia Index up about 0.2%. The US dollar was lower, and US equity futures slipped slightly, reflecting investors’ lack of new catalysts ahead of the Federal Reserve meeting.

Kuptsikevich noted that Bitcoin’s current trend is similar to cyclical corrections seen in 2013, 2017, and 2021. The market has already priced in the sharp declines of the past two months, and what happens next will depend on whether Federal Reserve policy can revive risk appetite. (CoinDesk)